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A case study of Nokia Corporation leading to the acquisition by MicrosoftmorebyDr. Joseph Aluya

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A case study of Nokia Corporation leading to the acquisition by MicrosoftThe significance of Nokia case study to leadership shows how a giant technologycommunicationthat permeated todays organizational systems can easily be acquired by Microsoft for $7.2 billion US dollars (Versace, 2013; Swisher,2013). In this analysis, didNokia Corporation deviate from its core competences interms of technology? Didpedagogical historical data that catapulted Nokia fromlocal to national, international,then into a saturated global wireless communicationgiant, now unable to reinvent

itself? Despite Nokias promenade ofinnovative technologies, why wasTechnologicalSituational Happenstances (T.S.H.) not applied to then organization?These myriads of questions will be analyzed, explored and synthesized.To start,understanding the historical background of Nokia in a global continuouschangingenvironment of technology is necessary for learners. Nokia was amultinational corporation in thelate 21stcentury headquartered in Finland. Nokia wasstructured into three main businesssegments. Markedly, the segments included (a)Nokia Mobile Phones, (b) NokiaNetworks, and (c) Nokia Ventures Organization. MobilePhone segment included thedevelopment, manufacture, and supply of wireless data

products and mobile phones. Globally, Nokia segments services wide range ofmobilephones for the arcade analog systems to digital standards and toJigsaw

. Most recentadvanced research was on Jigsaw emulated pattern-recognitionalgorithms that canidentify wide range of behaviors and logs detailed than pastsimilar applications (Hong,2010).

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More than 1.2 billion, over 5% of the world populationuses Nokias device

frommobile phones to advanced smartphones and high-performance mobilecomputers(Aluya, 2013; Versace, 2013). Nokia integrates its devices with innovativeservicesthrough Ovi, which includes music, maps, apps, email and more. Nokia's NAVTEQ isaleader in comprehensive digital mapping and navigation services, while NokiaSiemensNetworks provides equipment, services and solutions for communicationsnetworksglobally (Nokia Corporation, 2010a).In the network segment, Nokiaengaged in providing services related to thenetwork infrastructure of mobile andInternet Protocols (IP). Ubiquitously, the network segment was entrenched in the

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areas of radio, broadband access for network providers,operators, and to core of theinternet protocol mobility. Nokia Ventures Organization was formed for the purposeof creating new businesses outside the company's naturalgrowth path and coresegment of operation. This segment engaged in venture capitalactivities associatedwith a portfolio of new ventures. Essentially, these venturesincluded the commercial

enterprises of Nokia Internet Communications and NokiaHome Communications (ReutersInvestor, 2004).Company backgroundIn terms of communication, Nokia was one of the world leaders in mobilecommunications. Nokia dedication enhanced peoples livingstandard from exoticproducts to populist ubiquitous aesthetic seductive newbies. As a disrupter,itconsistently and persistently was disrupting the disruptors during its halcyonic days.Nokiaconjecturally have gone into hiatus and hypodermically under the Applespell.Productivity through easy-to-use and secure products like mobile phones,solutions forimaging, games, media, mobile network operators and businesses were enhancedby

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Nokia. Without any doubt, Nokia sells three of every 10 mobile handsetsmanufactured(Brown-Humes, 1999). Nokia now, unfortunately falls on the

categories of Ericson andMotorola. Why? Nokia failed to effectively and officiouslyuse TechnologicalSituational Happenstances (T.S.H.) illustrated below (see Vignette1) to reinvent itself,particularly understanding the situations on the global terrain.This is despite thecompanys success inestablishing a strong brand recognized throughout the world(Kipp, 2001).Vignette 1: Global impact of TSHSource: (Aluya, 2013b)

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Illuminated in the above vignette, critical components in this saga indicatedwhy Nokia failed to take into deep consideration the following: a) adaptation, b)culture, c)economic environment, d) creative destruction, f) leadership and aboveall, g)sustainability. Contra-analyzing the above factors were what led to the flaringandflaming out of major technology companies irrespective of how solid or robust

their

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financial indicates. Scholarship discussions continue with the concatenationsof Nokiahistorical events leading to Microsoft acquisition pro anon.Moving along,misconception about Nokia was that the name connotes aJapanese company. Far from it, thecompany background showed European, a company pigmented and entrenched withEuropean culture-

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Finnish Group Company. Toted up,the company has managed growth and innovation exceptionally wellthrough the use of TSH back in embryonic stage. Staff numbers increased from25,000 in 1993 to morethan 44,000 in 2013. Bureaucracy then did not stifle theculture of innovation or deepcapital creative destruction. Transmuted, the company

was Europe's fifth largest andsingle-handedly accounts for more than 50% of the Helsinkiexchange and a substantialchunk of Finnish GDP growth (Brown-Humes, 1999). Robustness of Nokias successesthen propelled the Finnish group to be one of the world's most respected andreputablecompanies.Socio psychological view and background

Holistically, Nokia's business sojourn began in 1865, when engineer Fredrik Idestam establisheda wood-pulp mill in southern Finland and started manufacturingpaper. In the Europeanindustrialization and the general consumption of paper andcardboard, Nokia becamesuccessful. This was a slight pendulum shift toward thefabianic economic doctrine.Nokia's products were exported first to Russia, to the UK and finally France. As a quintessentialcompany, it became a major employer and theemployees evolved into a paternalistic community.Presently, there remains acommunity called Nokia that existed on the riverbank of Emkoski insouthern Finland(Nokia, 2008).

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Nokias social, economic and historical analysis continued after WorldWar IIwhen the Finnish Rubber-Works bought majority shares in the Finnish Cable

Works.Due to the quixotic need for power transmission, telegraph, telephonenetworks, theFinnish Cable Works Company grew and expanded. Eventually, Rubber Worksand theCable Works companies consolidated and a creative destruction machinationeschewed.In 1967, the companies merged to form the Nokia Group. Later, seed money wasplantedinto making Nokia a global success in telecommunications. Electronics generated 3%of the Group's net sales and provided work for 460 people (Nokia, 2008). At the endof the 1980s a common standard for digital mobile telephony wasdeveloped throughinnovative method of using TSH. Present technology standard now commonly referred

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to as the GSM (Global System for Mobile Communications) wasinnovatively created. In1991, Nokia made agreements to supply GSM networks to nineEuropean countries andby August 1997 Nokia had supplied GSM systems to 59operators in 31 countries (Nokia,2008).Stephen Elop

was the president and chief executive officer (CEO) who led thecompany into thehands of Microsoft. Markedly, manyscholarship critics contraposeshow Elop made so many gaffs by not understanding the changingenvironment;however,Elop is still the most interoperable person in the world today. No needto be adhominem against his character.

Stephen Elop was appointed the CEO on September 21,2010, a day after the former CEOOllila-Pekka Kallasvuo resigned (Nokia Corporation,2010). To understand thepolitical and social historical background, it becomesimperative to mention formerCEOs who have led the organization to significantsuccesses. In the embryonic stage, KariKairamo was the CEO who transformed thecompany. Kari Kairamo ideological eruption led thecompany in the acquisition and

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